Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Soared Higher on Thursday

By Daniel Sparks – Jul 2, 2020 at 10:21AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The stock is hitting new highs following better-than-expected second-quarter deliveries. Here's what investors should know.

What happened

Shares of electric-car maker Tesla (TSLA 1.63%) rose sharply on Thursday, climbing past $1,200 for the first time. Shares rose more than 9% shortly after market open.

Investors cheered the company's strong vehicle deliveries in Q2, which came in far ahead of analyst estimates, despite Tesla's main factory in Fremont, California, being shut down during the first half of the quarter. 

A woman taking a test drive in a Model S

Model S. Image source: Tesla.

So what

Tesla delivered about 90,650 vehicles during Q2, crushing analysts' consensus forecast for 72,000 deliveries during the period. 

"While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels," Tesla said.

Of its 90,650 deliveries, 10,600 vehicles were either its Model S or X, and 80,050 were Model 3 or Y, the company said. Its second-quarter deliveries compare to 88,496 total deliveries in the first quarter of 2020 and 95,356 in the year-ago period. 

Now what

The growth stock's big jump on Thursday adds to its torrid run higher recently. Shares are up 435% over the past 12 months and 190% year to date as investors are showing a growing appreciation for the company's accelerated pace of execution as it capitalizes on the big growth opportunity in front of it.


Looking ahead, investors are likely hoping for sharp growth in deliveries in the second half of the year, fueled by Tesla's new Model Y and the addition of its factory in China, which didn't start producing vehicles until the end of 2019.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$287.55 (1.63%) $4.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.